Diaper, Tampon Prices Going Up
Get ready to pay more for diapers, tampons, and adult incontinence products. Cincinnati-based Proctor and Gamble released its financial reports for the last three months today. The company is still going gangbusters with sales of $18.1 billion. That’s up 5% from last year.
Buried in that good news was a paragraph saying Proctor and Gamble had “Started the process of implementing price increases on its Baby Care, Feminine Care, and Adult Incontinence product categories in the United States.”
That means you can expect to pay more for tampons, pads, and other feminine hygiene products as well as diapers for adults and little ones.
P & G is Paying More
The company said the price increases are because they have to pay more for the raw materials to make the products.
Industries all over the world are experiencing shortages of raw materials like paper, wood, and foam due to several factors.
COVID-19 shutdowns are part of the problem, as are massive shipping delays in importing materials and goods from overseas. That, combined with a crippling labor shortage in most of the country is making it far more expensive to manufacture products and get them where they need to go.
Prices Go Up In September
Proctor and Gamble did not release the exact amount of the price increases. They said the increase should run in the mid-to-high single digits. That means between 5 and 9 percent for most products.
According to P & G’s official statement, “The exact amount of the price increase will vary by brand and sub-brand.”
The company said the increase will take effect by mid-September.
Pink Tax
Just a year ago, Ohio State Bill 26 ended the so-called Pink Tax on feminine hygiene products like tampons, panty liners, menstrual cups, and sanitary napkins.
The bill also ended sales tax on adult incontinence products for people enrolled in Medicaid.
However, with the new price increased in effect, folks will be paying just about what they did before the tax was repealed and maybe a little bit more.
Beauty & Cleaning Products Booming
In other sales news, P & G said beauty and grooming product sales boomed due to the shutdown of salons.
- Beauty segment organic sales increased seven percent versus a year ago.
- Grooming segment organic sales increased four percent versus a year ago.
- Appliances organic sales increased more than 20% due to increased demand for at-home shaving and styling products.
Home care and cleaning products were up nearly 20% as well over last year as Americans made greater efforts to clean and disinfect their homes due to COVID.
Net earnings per share were $1.26, a 13% increase versus the prior year primarily driven by the increase in net sales.
